Written by:Paras Katoch

Decentraland (MANA) | First Decentralized Metaverse on Ethereum

Imagine walking into the game and purchasing a virtual property that holds real value. Thanks to Decentraland (MANA coin), it’s a reality now. Built on blockchain technology, Decentraland has come a long way since its inception in 2015.

decentraland

It’s the first gaming project that allows users to make a virtual property purchase, buy NFTs and build anything from a casino to hotels on the purchased land. It gives the user complete ownership of the virtual assets bought by him on the platform.

If you’re excited to explore the potential of the MANA coin, this is the post to read.

Table of Contents

  1. What is Decentraland?
  2. 1.1 History of Decentraland
    1.2 Stone Age
    1.3 Bronze Age
    1.4 Iron Age
  3. What is Decentraland MANA Coin?
  4. 2.1 MANA vs LAND
  5. Decentraland Architecture
  6. 3.1 Consensus Layer
    3.2 Content Distribution Layer
    (i) Content Files
    (ii) Script Files
    (iii) P2P Interaction
    3.3 Real-Time Layer
    3.4 Payment Channels
    3.5 Identity Systems
  7. How does Decentraland work?
  8. Decentraland Key Features for Players
  9. 5.1 Avatar
    5.2 Builder
    5.3 Marketplace
  10. Decentraland DAO
  11. Decentraland MANA Coin ICO
  12. Decentraland Benefits
  13. 8.1 Virtual NFT Marketplace
    8.2 Virtual Real Estate
    8.3 Advertising Opportunites
    8.4 Store of Value
  14. Decentraland Drawbacks
  15. 9.1 Speed Issue
    9.2 Low Adoption Rate
    9.3 Content Curation
  16. Decentraland MANA Coin Price
  17. Decentraland MANA Coin Price Prediction
  18. Where to Buy MANA Coin?
  19. Is Decentraland MANA a good investment?

What is Decentraland?

Decentraland is a gaming and virtual reality platform built on the Ethereum blockchain. It’s a place where users can purchase digital properties and create anything they wish to on the purchased LAND. LAND is a non-fungible, scarce asset on Decentraland. Any user who purchases the LAND has the right and ownership of the virtual property which makes it completely decentralized.

History of Decentraland:

Decentraland was created in 2015 by Ari Meilich and Esteban Ordano. It has a long history of development before going live in February 2020 amid the rise of the NFT trend. The game is developed in multiple stages that can be described in Ages, mentioned below –

Decentraland founders MANA coin
Project Founders

Stone Age:

The stone age is the early development stage of Decentraland. It had an infinite 2D map where the digital assets are represented as pixels. Each pixel contains unique metadata for the identification of the asset and the owner.

Decentraland stone age
Image Source: Whitepaper

Bronze Age:

In the year 2016, the team build a 3D version of the game comprising of land parcels. It used Distributed Hash Table to download the file containing the parcel’s (asset) content that contains every single detail of the asset in question.

Iron Age:

Iron Age is a much better and advanced 3D version of Decentraland that allows peer-to-peer communication i.e voice and chat. Creating an economy within the game that encourages payments in digital currency. Better content distribution and land ownership.

Each LAND unit is 33 feet wide by 33 feet long, with no limited height

What is Decentraland MANA Coin?

MANA is the native currency of Decentraland. It is an ERC20 token (like Brave Browser BAT Coin) that is used to purchase digital assets in the game. MANA is also used to make in-world purchases like digital goods and services. MANA holders can also vote for the key project proposals in deciding the direction of the project.

mana coin

Decentraland burns MANA tokens that are used to purchase the LAND, making it a deflationary currency. The private key of MANA tokens was destroyed by the creators of Decentraland, therefore eliminating any chances of change in its contract.

Decentraland Coin MAP
Decentraland MAP

Closest LAND to Genesis block (in Green) attracts higher cost

MANA vs LAND:

MANA is a fungible token which means it can be treated as a currency on the network and can be used to make transactions on the platform. On the other hand, LAND is an ERC721 token which is a non-fungible token (NFT). Each LAND is unique and cannot be traded or exchanged. However, LAND can be used to create in-world items like unique land parcels, avatars etc.

A user can purchase LAND and other items using MANA as a form of payment. The larger parcels of LAND combine together to form an Estate. LAND and other items can be easily purchased on the Decentraland marketplace

The total supply of MANA is limited to 21.9 billion

Decentraland Architecture:

Built on Ethereum, Decentraland consists of multi-layered architecture shared below –

Decentraland architecture
Image Source: Whitepaper

Consensus Layer:

The Consensus layer maintains the ledger of ownership of LAND using the Ethereum smart contract. Each LAND has unique coordinates, a description file and an owner. All these details are stored and verified on the consensus layer.

Content Distribution Layer:

The content distribution layer controls the know-how of content within each parcel and includes a set of files to render them. Decentraland uses decentralized storage system that allows it to work without having to depend on a centralized server. To minimize the rise in future costs, it will switch to protocols like Filecoin which is a different topic reserved for another post. Sharing the list of files contained in the distribution layer –

i. Content Files:

It contains the reference of all audio and texture files.

ii. Script Files (Scripting Entry Point):

It defines the placement and the behaviour of the content inside the parcel.

iii. P2P Interaction:

It allows the user to connect with the server and establish user to user connection.

Real-Time Layer:

This layer will help users to connect and communicate with each other through gestures, voice and messages in real-time.

Payment Channels:

Payment channels for faster payments with the lowest possible fees

Identity Systems:

Decentraland uses the identity system to understand and verify the ownership of in-world items and original creations.

How does Decentraland work?

Playing in Decentraland is similar to playing in any other game. Since it’s a blockchain-based project. In order to access the game, the user will have to connect their wallet that supports ERC20 tokens i.e MetaMask

Decentraland login
Image Source: Decentraland

Once connected, it will take you inside the page where you can create your Avatar and get in-world items like clothing, shoes etc. Further, it will take you to the tutorial and finally, you’re all set to explore the world of virtual reality by yourself.

In order to check in-world items or purchase the LAND, you have to visit the Decentraland Marketplace.

Decentraland marketplace

Decentraland LAND units are capped at 90,000 only

Decentraland Key Features for Players:

As a player, you must be aware of the key features that the game will offer you. Here’s the list of the top features –

Avatar:

Once you enter Decentraland, it is mandatory to create a virtual character that will be your Avatar in the game. The best part of creating an Avatar, you can always change or upgrade your character anytime with a different hairstyle, looks, clothing and accessories like shoes. Each Avatar has a unique passport that acts as a bridge between the game and the Ethereum wallet.

Decentraland MANA coin Avatar

Builder:

Once you purchase a LAND on Decentraland. As an owner, you can create anything on your property which means you became a builder. Do not worry, there’s no coding work involved here. Decentraland provides pre-built scene pools which can be accessed from its marketplace.

Decentraland scene pool

Marketplace:

The marketplace is an exclusive shop of Decentraland. Players can check the LAND available for sale and make an in-world item purchase. Also, it has a complete collection of Scene Pools and much more. Any purchase done on the marketplace will be recorded on the passport connected with your Ethereum wallet. Since these are NFT based purchases, you do not have to worry about loss or theft of your purchased items. Once purchased it’s yours.

Decentraland DAO:

This topic has been covered in-depth in our post on Decentraland DAO.

Decentraland MANA Coin ICO:

Decentraland launched its ICO in the year August 2017. It raised a total of $24 million in just under 35 seconds. 1000 MANA was used to purchase a LAND that was valued at just $24. The ICO investors should have made a huge profit if they had sold the LAND in the bull run of 2021.

Decentraland ICO was one of the most successful ICOs of its time, even better than the ICO of Enjin Coin, an NFT project built around gaming.

Checkout Solice Crypto Metaverse. First VR metaverse on Solana

Decentraland Benefits:

Virtual NFT Marketplace:

Decentraland became one of the organised platforms that can host NFT sales right inside the game. There’re NFT auctions that have already taken place inside the game where different artists displayed their digital art. This includes London based auction house by the name Southeby’s that displayed virtual art inside the Decentraland world.

Virtual Real Estate:

Decentraland has become the first blockchain-based gaming platform to offer a successful 3D online game with virtual properties that replicates the real-world real estate market. These properties are owned by real individuals and hold real value. Thanks to MANA, players can buy, sell or build on these properties which again help raise the value of the virtual estate.

Zed Run HQ on Decentraland –

Advertising Opportunites:

More traffic provides better visibility to brands. Decentraland has turned into a platform that can attract big brands and offer them to advertise in-world using billboards near high traffic LAND parcels or estate to promote their products and services. This will be the core feature that isn’t yet offered by any other competitor in its arena.

Store of Value:

Decentraland virtual estate and MANA token have become a store of value and a hedge against inflation. The assets are predicted to rise in value especially in the bull run, making it a lucrative investment.

Decentraland Drawbacks:

Speed Issue:

The fact that the platform’s browser mode makes it slow and frustrating for the players. A standard computer isn’t capable of running Decentraland smoothly for a long period of time. This is bad news since the value of the game depends on the time spent by the players on the platform. Hopefully, the team is working on improving the user experience with faster loading and a smoother in-world experience.

Users can now download Decentraland on Windows PC & MacBook

Low Adoption Rate:

As per the reports, there’re approximately 1000 active users that visit Decentraland per day (2021). This is a very low figure compared to mainstream games that attract millions of users per day. The low adoption rate is a concern.

decentraland-avatar

However, on the brighter side, blockchain gaming is still in the nascent stage and Decentraland has the first-mover advantage.

Content Curation:

Content curation is yet another area of concern. The system isn’t capable of filtering mature content (gambling, violence, abusive language etc). The team is reportedly working on it, which can further improve the adoption rate once the in-world curation system falls into place.

Decentraland MANA Coin Price:

Please check the latest MANA Coin price, shared below –

Decentraland MANA Coin Price Prediction:

Since its inception, the project has come a long way from the Stone age to the Iron age attracting interest from users across the globe. A successful ICO highlights the positive sentiments around the project’s projected growth. Moreover, the platform has attracted a lot of artists sharing and selling NFTs on Decentraland.

Decentraland core rests with its core competency i.e virtual assets which are continuously appreciating in value followed by MANA coin, the only cryptocurrency accepted in its ecosystem.

Though the factors of low adoption rate and file downloading time are a matter of concern at the moment, it didn’t seem to stop the project from growing. Built on Ethereum 1.0, speed is yet an issue for the team which should be solved once ETH2.0 completes its rollout in 2022.

The rise of MANA totally depends on the popularity and adoption of Decentraland which seems to be on the positive side at least in the coming bull run. Taking all factors into consideration, I won’t be surprised if MANA grew 3x-4x in value raising the price level to around $9.

Enjin Coin can be an alternate investment to MANA

Where to Buy MANA Coin?

Mana is available to purchase on the leading crypto exchanges like Binance, Crypto.com and many more. You can use any Ethereum-compatible wallet like MetaMask or hardware wallets like Trezor or Ledger Nano S to store MANA.

Since MANA is an ERC20 token, it is also available on Uniswap decentralized Exchange and SushiSwap Crypto DEX. Always remember, rather than keeping the coins in the exchange it’s better to store them in your wallet. Personally, I suggest users go with the hardware wallets like Ledger Nano S to store all their coins safely and securely.

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Is Decentraland MANA a good investment?

Taking all the factors into consideration, from benefits to drawbacks it is fair to say Decentraland is a very thoughtful project that derives its power from blockchain technology. Since the project backbone, i.e Ethereum is strong and in demand, the user or investor shouldn’t worry about the project authenticity in the first place.

Moreover, the founders of Decentraland have burnt the private keys of MANA smart contracts, eliminating any chance of interference in the supply of MANA token. Solid demand for virtual assets and a growing NFT in-world market is going to be the key drivers of its ecosystem.

In the end, it’s your decision. If you value virtual assets or see it as an investment then MANA is one of the coins you should take into consideration and if you think the demand for LAND parcels and estates are temporary and will fizzle out with time then it’s better to park your money on blockchain projects like COSMOS crypto or Solana crypto.

This completes my review of the Decentraland MANA coin with future price prediction. In the next post, I will cover Chiliz Coin and the Sandbox crypto. If you’re a fan of blockchain technology then please do share this post on your social handles and educate everyone around you. Do remember to subscribe to my YouTube channel for more informative content, released every week.

DISCLAIMER:

Cryptocurrency is a highly volatile market. All the information shared in the post is for knowledge purpose only. By no means, it’s financial or investment advice. Readers are responsible for their own investment decisions and should only invest in cryptocurrency after proper research.

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